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5) Loan amortization schedule Personal Finace Problem Joan Messineo
borrowed $18,000 at a 14% annual rate of interest to be repaid over 3 years.
The loan is amortized into three equal, annual, end-of-year payments.
6) NPV Calculate the net present value (NPV) for a 30-year project with an
initial investment of $ 0 and a cash inflow of $2,000 per year. Assume that the
firm has an opportunity cost of 17%. Comment on the acceptability of the
project.
7) Scenario Analysis Automated Food Distribution Corp. (AFDC) produces
vending machines and places them in public buildings. The company has
obtained permission to place one of its machine in a local library. The company
makes two types of machines. One distributes soft drinks, and the other
distributes snack foods. AFDC expects both machines to provide benefits over a
8-year period, and each has a required investment of $2,990. The firm uses a
9.8% cost of capital. Management has constructed the following table of
estimates of annual cash inflows for pessimistic., most likely, and optimistic
results.
8) Degree of operating leverage Grey Products has fixed operating costs of
$382,000, varaiable operating costs of $15.61 per unit, and selling price of
$62.91 per unit.
9) Finding
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FIN 419 Final Exam Guide